The move by Germany, which has previously stopped short of tougher lines against Israel’s government taken by some of its European Union allies, appeared likely to further isolate Israel in the wake of the military takeover plan that has been decried by the United Nations, aid and human rights groups, and supporters of Israeli hostages still held in Gaza, among others.

Germany, along with the United States and Italy, is among the top foreign suppliers of equipment used by Israel’s military.

Merz said in a statement that Israel “has the right to defend itself against Hamas’ terror” and that the release of Israeli hostages and purposeful negotiations toward a ceasefire are “our top priority.” He said that Hamas mustn’t have a role in the future of Gaza.

“The even harsher military action by the Israeli army in the Gaza Strip, approved by the Israeli Cabinet last night, makes it increasingly difficult for the German government to see how these goals will be achieved,” he said.

“Under these circumstances, the German government will not authorise any exports of military equipment that could be used in the Gaza Strip until further notice.”

Netanyahu spoke with Merz on Friday and expressed disappointment with the arms decision, according to an Israeli government statement. Germany is rewarding Hamas and failing to support Israel’s “just war” against the group, the statement said.

It wasn’t immediately clear which military equipment from Germany would be affected. Asked by The Associated Press for details, the German government declined to comment.

Germany has led efforts among the EU’s 27 member nations to block collective criticism of or efforts to stop Israel’s blockade of Gaza and military campaign in the coastal enclave.

Alongside Hungary and the Czech Republic, Germany has argued against calls from Spain, Ireland and the Netherlands to scrap a bilateral agreement with Israel, sanction settlers, and enact an arms embargo.

The German government remains deeply concerned about the suffering of civilians in Gaza, Merz said.

“With the planned offensive, the Israeli government bears even greater responsibility than before for providing for their needs,” he said.

Merz called on Israel to allow comprehensive access for aid deliveries — including for UN organizations and other nongovernmental organisations — and said that Israel “must continue to comprehensively and sustainably address the humanitarian situation in Gaza.”

The move has particular weight because Germany has been seen as one of Israel’s strongest supporters — arguably surpassed only by the United States. Germany has maintained a strongly pro-Israel stance for decades largely because of its historical responsibility for the Holocaust, which has shaped its postwar foreign policy around ensuring Israel’s security and combating antisemitism.

Merz’s government didn’t join announcements by French President Emmanuel Macron and British Prime Minister Keir Starmer that their governments plan to formally recognise a Palestinian state in September.

The reluctance so far of Germany, the EU’s biggest economic power, to take a tougher line on the actions of Netanyahu’s government clouded the prospects that international pressure might have an impact on Israel’s decisions.

Israel’s air and ground war has already killed tens of thousands of people in Gaza, displaced most of the population, destroyed vast areas and pushed the territory toward famine. The campaign was triggered when Hamas-led militants stormed into Israel on October 7, 2023, killing around 1200 people and abducting 251 people.

Merz also called on Israel’s government “not to take any further steps toward annexing the West Bank.”

A ‘big deal’ but not decisive

According to the Stockholm International Peace Research Institute, or SIPRI, last year, Germany was the No. 2 supplier of arms to Israel after the United States.

German companies provide 30 per cent of Israel’s defense imports, mostly naval armaments, according to data analysed by Zain Hussain, an arms transfers researcher at SIPRI. He suggested the German pullback would be temporary.

“This is going to be a limited measure,” Hussain said. “Germany has been committed to providing Israel with arms, especially with ships.

Germany, which has stood firmly with Israel, “is openly admitting that it is uncomfortable with Israel’s actions and limiting some arms transfers, and for Germany this is a huge deal,” he said.

“However, I don’t think this alone will stop Israel’s operations in Gaza, and Israel still has the USA as a committed arms supplier.”

German-made engines can be fitted in Israeli Merkava tanks and Namer armored personnel carriers, which are actively deployed in Gaza. Sa’ar corvettes — small warships festooned with sophisticated radar equipment and cannons — from Germany have been used to shell targets in Gaza during the war, Hussain said.

The German news agency DPA, citing figures from the Germany Economy Ministry, in early June reported that the government had approved €485 million (about $866 million) worth of arms exports to Israel between October 7, 2023 and May 13 this year.

Other European officials express concern

In a post on X, European Commission President Ursula von der Leyen said Israel’s extension of military operations in Gaza “must be reconsidered,” in her strongest criticism yet during the war. She called again for Israel to let in more aid.

The foreign ministers of the Netherlands and Denmark called Israel’s decision to intensify the operation “wrong” and expressed concerns for civilians and the humanitarian situation in Gaza. Czech Foreign Minister Jan Lipavský told the CTK news agency his country considers Israel’s plan “a risky step.”

Last week, even before the Gaza City takeover plan, Slovenia announced that it would ban the import, export and transit of all weapons to and from Israel in response to the country’s actions in Gaza — saying it was the first EU member country to do so.

Last month, two dozen mostly European countries condemned Israel’s restrictions on aid shipments into Gaza and the killings of hundreds of Palestinians trying to reach food.

Last year, the UK suspended exports of some weapons to Israel over concerns they could be used to break international law, but it was a move with limited military impact. The decision related to about 30 of 350 existing export licenses for equipment that could be used in Gaza, including parts for military planes, helicopters and drones.

Outrage over Israel’s actions in Gaza has grown in Europe as images of suffering Palestinians have driven protests in London, Berlin, Brussels and other capitals. More recently, almost-daily killings of Palestinians while seeking aid have tested the EU’s friendly relationship with Israel like never before.

The Israeli decision, taken after a late-night meeting of top officials, came despite mounting international calls to end the war and protests by many in Israel who fear for the remaining hostages held by Hamas. Tens of thousands of Palestinians are bracing to once again be forced from their homes, while families of the hostages fear their loved ones won’t return.

Most of the hostages have been released in ceasefires or other deals but 50 remain inside Gaza. Israel believes around 20 of them to be alive.

The timing of another major Israeli ground operation remains unclear since it will likely hinge on mobilising thousands of troops and forcibly evacuating civilians, almost certainly exacerbating the humanitarian catastrophe.